Best of Mindtree yet to come; company to grow faster than industry despite uncertainties: Chairman Krishnakumar Natarajan
Mindtree described construction major L&T's unsolicited bid to acquire a majority holding in the IT firm as 'unusual situation'
Chairman Krishnakumar Natarajan and CEO Rostow Ravanan said the L&T matter was pending regulatory approvals
The two top officials said company is focussed on capitalising on opportunities and maintaining high-growth trajectory
Natarajan and Ravanan stressed on importance of rigorous governance standards as essential ingredient
New Delhi: Mindtree - where Larsen & Toubro is in the midst of acquiring majority stake - has exuded confidence that it will deliver a low-teen growth rate in FY20, and promised that the "best of Mindtree is yet to come".
The Bengaluru-based company described construction major L&T's unsolicited bid to acquire a majority holding in the IT firm as "unusual situation" and said it is fully committed to "handling this issue in a manner that maximises value for all our stakeholders".
Chairman Krishnakumar Natarajan and CEO Rostow Ravanan, in their message to shareholders in the company's annual report filed with BSE on Friday, noted that the L&T matter was pending regulatory approvals at the time of penning the message.
The two top officials said the company is focussed on capitalising on the opportunities and maintaining high-growth trajectory, growing faster than the industry.
"Although the external environment presents a slightly worrisome picture – global trade wars, increasing risk of terrorism disrupting people's lives, slowing economic growth, and political uncertainty – we are confident that we are better prepared to handle these uncertainties than ever before.
"We estimate that we will deliver a low-teen growth rate in FY20, along with a margin expansion of 100-120 bps," they said.
In March, L&T had said it will buy 20.32 percent stake in Mindtree from VG Siddhartha and his coffee enterprise for over Rs 3,000 crore - marking India's first-ever hostile takeover bid in the IT space.
Since then, L&T has steadily increased its holding in the Bengaluru-based tech firm to about 30 percent. It is currently in the process of an open offer to buy an additional 31 percent stake. In all, the infrastructure major is eyeing about 66 percent stake in Mindtree for over Rs 10,700 crore.
The open offer - with an offer price of Rs 980 per share - opened on June 17 and is slated to close on June 28. If the offer is subscribed fully, the engineering behemoth will end up with a 66.32 percent holding in Mindtree. L&T has secured three board positions at the IT services firm, giving the former a firm control over the company.
Mindtree has been in the spotlight since early part of this year due to the takeover saga, and more recently when its Board in mid-April proposed to pay a special dividend to shareholders, including promoters, that along with regular dividend and tax components would strip the mid-sized IT firm of about Rs 530 crore.
In the latest annual report, Natarajan and Ravanan stressed on the importance of rigorous governance standards as essential ingredient to deliver sustainable financial performance.
"You have our unequivocal commitment to uphold the highest standards of transparency and governance in Mindtree," they said.
They also admitted that some aspects needed improvement and two such high-priority areas included improving current margin levels which are currently below its expectations, and enhancing gender pay parity.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
IPL 2020: Former South Africa cricketer JP Duminy to join Star Sports' commentary panel ahead of new season
Making his debut on the world feed will be former South Africa all-rounder JP Duminy, who will be joined by a host of experts that include the likes of Harsha Bhogle, Mark Nicholas, Simon Doull and Ian Bishop.
Six months since India’s coronavirus lockdown was declared, how are people marking the passage of time?
Kings XI Punjab lost to Delhi Capitals in a super over on Sunday after the teams were tied at 157 at the end of the Twenty20 match.